World Wrestling Entertainment, Inc., an integrated media and entertainment company, is engaged in the sports entertainment business worldwide. It operates in four segments: Live and Televised Entertainment, Consumer Products, Digital Media, and WWE Studios. The Live and Televised Entertainment segment produced live events and provides content for its television and other programming; designs, markets, and distributes various WWE-branded products, such as t-shirts, caps, and other novelty items; and offers pay-per-view programs. The Consumer Products segment has a licensing program using its marks and logos, copyrighted works, and characters on various retail products, including toys, video games, apparel, and books; distributes home entertainment DVD/Blu-ray products; and publishes WWE, WWE kids, and several special magazines. The Digital Media segment operates Website, WWE.com; provides advertising services; sells merchandise on its Website at WWEShop Internet storefront; and sells broadband and mobile content. The WWE Studios segment is involved in the production and distribution of filmed entertainment content.
Please take a look at the 6-month chart of WWE (World Wrestling Entertainment, Inc.) below with my added notations:
There are two prices in particular that standout on WWE. The first is the 52-week high resistance at $25 (red). The other is the $22 level (green) that has been a key support throughout the entire month of February. The stock appears to be on its way back down to the $22 support, which could provide a bounce higher.
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The Tale of the Tape: WWE has key levels of $22 and $25. A long trade could be made at $22, or on a break through $25, with a stop placed below the level of entry. However, if the stock were to break below $22 traders might want to look to get short on the stock.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach